Mastering Volatility: Capitalising on CPI-Driven Market Moves with Quantitative Strategies and Tactical Precision

Hello, outstanding students of Diamond Ridge Financial Academy!

I’m Charles Hanover, and I’m truly honoured to be here with you as we embark on this journey to explore the secrets of quantitative trading.

In today’s fast-moving financial markets, knowing the theory is just the first step; the real challenge is applying that knowledge to navigate market swings and achieve steady, long-term returns. Tonight, we’ll dive into stock market trends and the impact of US CPI data to uncover hidden opportunities and help you make smarter investment decisions.

Today, the UK stock market had a strong rally, with the FTSE 100 up 0.77%, hitting a new all-time high. This surge was mainly driven by the US government’s announcement of new steel and aluminium tariffs, which sent oil and mining stocks soaring and attracted international capital inflows. However, the policy risks behind this rally shouldn’t be ignored. The UK’s National Audit Office (NAO) just released a report highlighting how the country’s increasingly complex tax system pushes up costs for businesses and the government. With tax thresholds frozen, more taxpayers are being pushed into higher tax brackets, adding pressure on small businesses and landlords. This raises concerns about future corporate profitability.

The latest job market data isn’t looking great either. Permanent and temporary job vacancies have been dropping for months, marking the sharpest decline since the pandemic. This suggests businesses are becoming more cautious about hiring due to rising costs and policy uncertainty, which could undermine the economic recovery. But for now, the market is brushing off these risks, focusing instead on short-term positives like energy stock gains and capital inflows, pushing stocks even higher.

On the global front, US trade policies and France’s massive AI investment plan are adding complexity to market sentiment. The UK steel industry, in particular, is worried about Trump’s tariffs. If the US keeps increasing tariffs, global steel trade flows could shift, making competition even tougher for the UK and potentially hitting the industry hard. So, while the UK stock market’s rapid climb looks great on the surface, it could be building up bubble risks. Given the current economic data and policy landscape, this short-term optimism won’t last forever, and we should stay alert for a potential pullback.

The US stock market also showed strong performance today, with the Dow, S&P 500 and Nasdaq all posting gains during the session. The steel and aluminium sectors stood out, driven by President Trump’s announcement on Sunday that he plans to impose an additional 25% tariff on all imported steel and aluminium. This sent stocks like US Steel, Nucor, and Alcoa soaring. However, this policy has raised concerns about rising inflation and limited room for Fed rate cuts.  

At the same time, Trump’s tough stance on tariffs has increased the risk of a global trade war. German Chancellor Scholz clarified that if the US taxes European goods, the EU will retaliate swiftly. This potential trade conflict has further heightened global market uncertainty.

As a result, gold prices surged past $2.9K per ounce, hitting an all-time high and becoming a key safe-haven asset. Geopolitical uncertainty, inflation fears and Trump’s tariff policy have been the main drivers of gold’s recent rally.  

Despite market turbulence and uncertainty, we have recently delivered outstanding stock and crypto trading results. The truth is that real investment opportunities often emerge from market volatility. We can capitalize on these swings and achieve consistent, stable profits as long as we have a clear trading strategy, sharp market insights and precise support from our quantitative trading system.

For individual stocks, Innodata (INOD), which we recommended on Jan 28, has performed exceptionally well, already delivering over 20% in short-term gains. From a technical perspective, the stock has now reached a key resistance level at $45, making it an ideal take-profit point.  

Of course, looking at long-term economic trends, even with global political turmoil and high inflation, nothing can stop the rise of AI and the digital economy. The recent pullback in tech stocks is only temporary. In the long run, they will continue to lead the market higher, especially companies with strong technological innovation. The bigger the short-term dip in quality tech stocks, the better the opportunity for us to buy at lower prices. To fully benefit from the digital economy and AI boom in the future, early positioning in these sectors will be a key step.

Right now, I’m particularly watching two highly promising tech stocks. One of them combines blockchain and AI to solve bandwidth bottlenecks in traditional systems, significantly improving power, security and data processing capabilities. It optimizes both power efficiency and data security. This innovative technology is already widely used in optical and electrical Ethernet networks, and it has enormous market potential. Recently, due to the broader market pullback, this stock has dropped more than 30% and is now in a bottoming phase. Once the technicals turn bullish, it will be an excellent buy-the-dip opportunity. For members with ample capital, I recommend reaching out to my assistant. We will tailor a precise investment portfolio based on your funding size and risk tolerance. A well-planned strategy combined with patience often leads to returns that exceed expectations.

Compared to individual stocks, the standout performer recently has undoubtedly been contract trading in the crypto market. The crypto market offers huge profit opportunities with its 24/7 trading and high volatility. Last week, we successfully wrapped up our first profit plan, achieving 50% of our overall profit target. In terms of returns, crypto contract trading far outperforms traditional stock trading, especially during key economic data releases. By using arbitrage trading strategies, we can reduce risk significantly and generate extremely high returns.

For example, last week’s US jobs report was a perfect arbitrage opportunity. The data that day sent mixed signals: the drop in the unemployment rate was short-term bearish for crypto, while strong non-farm payroll data provided a bullish effect. As long as you have enough capital, you can make money whether you go long or short. Take BTC as an example; after the data release, its price dipped slightly, then rebounded quickly before making a sharp pullback.  

This kind of unpredictable movement is actually the best setup for arbitrage trading strategies. With our quantitative trading system accurately capturing buy and sell signals, we not only profited from the uptrend but also made extra gains during the pullback.

Looking at the comparison above, contract trading, backed by a quantitative trading system, not only controls risk but also delivers higher returns. Right now, this system is still in its free service phase and hasn’t officially launched. For members with smaller capital, this is a rare opportunity. I recommend focusing funds on short-term contract trading to grow your principal first. Once you’ve built up enough capital, you can move on to portfolio investing and diversification for long-term, stable profits.  

This is the core principle we’ve repeatedly emphasised: successful investing isn’t about getting rich overnight but steadily growing your assets with every market move. For beginners in contract trading, this isn’t just a great chance to gain real market experience quickly but also a critical period to lay a solid foundation for long-term investments.

Additionally, our analysis of price movements shows that volatility is essentially the market’s reaction to real-time information. This is what makes contract trading stand out from traditional investing; it allows us to track short-term market swings closely, especially reactions to specific events and economic data. These data points are often quickly reflected in market prices, creating high probability, high-return trading opportunities. For example, macroeconomic data releases, policy changes and industry-related good or bad news can all trigger strong market sentiment shifts.  

The advantage of a quantitative trading system is its ability to analyze market data in real time and identify trading opportunities faster than manual analysis. This means that during market turbulence, we can position ourselves early, execute trades with precision, maximize returns and effectively manage risk. The efficiency of this system was proven during last week’s non-farm payroll data release.

However, we also noticed that many members missed last week’s non-farm payroll trading opportunity due to insufficient preparation. Real opportunities are always present in the markets, and the key is to be ready in advance and execute your plan with precision. The upcoming week will be a super data week, bringing a series of major economic releases. The most important one to watch is the US CPI data coming out on Wednesday. As a key measure of inflation, CPI data not only directly impacts short-term market trends but also has a lasting effect on the Federal Reserve’s monetary policy and global capital flows. With rising economic uncertainty, this data release could trigger major market volatility.

Some of the members might not fully understand the trading opportunities CPI data can bring. Let’s review the CPI market movements of the past three months so you can clearly see the patterns and arbitrage opportunities.  

On Nov 13, 2024, after the US CPI data release, BTC fluctuated sharply between $87K and $91.8K, with single contract trades yielding over 450% in returns.  

On Dec 11, 2024, after the CPI data release, BTC surged from $96K to a peak of $101.8K, with single contract trades generating up to 600% returns.

On Jan 15, 2025, during the latest CPI market movement, BTC surged from $99.9K to a peak of $105.8K, with single contract trades yielding over 500% in returns.  

Looking at these three past market movements, we can clearly see that after CPI data is released, the market usually experiences major volatility. The gap between the actual data and market expectations typically drives the direction of the price swing. If the data comes in lower than expected, the market may drop. However, the market often sees a strong rally if the data is higher than expected. This data-driven market movement is the perfect opportunity for arbitrage trading strategies to shine.

If you take a deep look at past market trends, you’ll notice that even without the help of a quantitative trading tool, experienced traders can still capture some profit opportunities. For example, CPI data is usually released at 8:30 AM ET (1:30 PM UK time). Based on past market movements, BTC’s price only starts to swing sharply after the data is out. As shown in the chart above, even after the data release, there is still plenty of time to observe the market trend and trade accordingly.  

In other words, CPI market movements usually have a clear trading window. For experienced traders, following the data trend often leads to steady profits. Those using a quantitative trading system can capture market trends even before the full market reaction, leading to even greater returns.

From this analysis, you should now realize that investing is not as simple as amateur traders think, but it’s also not as complicated as professional traders make it seem. Why is there such a polarized view? The simple part is that the market follows patterns, and every price move reflects trader sentiment, which ultimately shows up in technical trends and fundamental changes. We can consistently find high-probability trades by fully understanding market trends and using the right tools. The complex part is that real investing isn’t just about buying and selling; it involves strategy, risk management and psychological discipline.

Whether you’re a beginner or an experienced trader, this week’s market movement is a rare opportunity for profit. First, the CPI release has a set schedule and clear historical price movement patterns, allowing us to time our trades precisely and take advantage of price swings. Second, we have the support of a quantitative trading system, which helps us catch market trends earlier, react faster and make high-efficiency decisions.

On top of that, traders with larger capital can use arbitrage strategies to hedge risks across multiple markets, ensuring more stable returns.

This well-planned trading setup not only allows us to determine trade timing and entry points in advance but also helps us manage risk through diversification and multi-strategy execution. With these advantages, we can stay calm during sudden market moves, quickly find breakout points and increase our overall profit potential.

On the surface, the market is always full of opportunities, but the key is finding the right ones, those that can bring steady profits in a low-risk environment. This is what separates successful investors from those who fail. Unsuccessful traders often obsess over predicting market ups and downs, trying to find certainty in random price swings, only to end up constantly hitting stop losses. Successful traders, on the other hand, focus on high-probability trades, using data and historical trends to fine-tune their strategies and build a stable profit model. They understand that investing is not gambling; it’s a long-term game. They can stay ahead in the long run only by finding their own rhythm in market trends.

So, as long as we can grasp market trends, use the right tools and apply well-structured strategies, we have a high chance of capturing every key market move and growing our profits consistently.  

Because this week presents such strong trading conditions, we are adjusting our profit target to 80%. While today’s contract trading returns are below 10%, we have already mapped out our next key moves. This week, Wednesday’s CPI market reaction will be the core of our profit plan. The data release is very likely to trigger intense market swings, giving us highly attractive trading opportunities.

So, all members should prepare their funds and adjust their mindset in advance. This is especially important for those with smaller capital, as this is a rare opportunity to grow your funds quickly. By taking advantage of such high-quality trading setups, you can not only build your capital faster but also lay a solid foundation for long-term investing.  

Opportunities don’t last forever. Every successful trade is a stepping stone to future wealth. Let’s seize this week’s market movement, go all in and aim for even greater returns!